Take Notice that Albian Sands Energy Inc. (Albian Sands) has made applications to the Alberta Energy and Utilities Board (EUB) and Alberta Environment (AENV) for amendments and renewals to existing approvals to expand the existing Muskeg River Mine (MRM). The expansion would allow Albian Sands to increase its bitumen production capacity to an average nominal 270,000 barrels per calendar day of bitumen (43,000 cubic metres per calendar day). The application for renewal of AENV approvals is for up to a maximum of 10 years.

The MRM expansion will involve adding new processing facilities, including a third oil sand processing train, de-bottlenecking the existing facilities and accessing additional mining areas. The additional mining areas are located on bituminous leases No. 7277080T13 (Lease 13), No.7288080T90 (Lease 90) and No. 7280090T30 (Lease 30).

The MRM is located approximately 70 kilometres north of Fort McMurray and is operated by Albian Sands Energy Inc. a joint venture company owned by Shell Canada Limited, Chevron Canada Limited and Western Oil Sands L.P.

Construction of the proposed MRM expansion project, if approved, would begin in 2007.

This Notice of Application is being distributed to advise interested persons that the applications are available, and that the EUB, AENV and other government departments are now undertaking reviews of the applications.

In support of the proposal, Albian Sands has prepared and submitted the following applications:

• Application No. 1398411 to the EUB, pursuant to Section 13 of the Oil Sands Conservation Act to amend EUB Approval No. 8512 to access additional mining areas, and carry out modifications and add processing units to the Muskeg River Mine oil sand processing facility.

• Application No. 004-20809 to AENV, pursuant to the Environmental Protection and Enhancement Act (EPEA), for an amendment to the existing EPEA approval to construct and operate the mine expansion facilities at the Albian Sands Muskeg River Mine; and for a renewal of the existing EPEA Approval 20809-00-00, to continue operating the Muskeg River Mine.

• An application to AENV for the renewal and amendment of Licence 00071821-00-00 (as amended), pursuant to Sections 59 and 54 of the Water Act, to modify the boundaries of the project area and increase the allowable amount of water diverted from surface runoff.

- The maximum site runoff will increase from 3,830,000 cubic metres to 13,100,00 cubic metres.

These applications share a common Environmental Impact Assessment (EIA) report which Albian Sands has prepared and submitted to the Director, Environmental Assessment, Northern Region. The EIA report forms part of the applications to the EUB.

To obtain additional information or a copy of the applications and the EIA report (CD version also available), contact:

For information regarding EUB procedures, contact:

Fort McMurray Office
Shaunna Cartwright
Telephone: (780) 743-7489
Fax: (780) 743-7141
Email: shaunna.cartwright@gov.ab.ca

Copies of the applications and the EIA report are available for viewing at the following locations:

Alberta Energy and Utilities Board
Fort McMurray Office
2nd Floor, Provincial Building
9915 Franklin Avenue
Fort McMurray, Alberta T9H 2K4

Alberta Energy and Utilities Board
Information Services, Calgary Office
Main Floor, 640 5th Avenue SW
Calgary, Alberta T2P 3G4
Telephone (403) 297-8190

Alberta Environment, Northern Region
Register of Environmental Assessment Information
#111 Twin Atria Building
4999 98 Avenue
Edmonton, Alberta T6B 2X3
Attention: Patti Humphrey
Telephone: (780) 427-5828

Further Take Notice under Section 73 of EPEA and Section 109 of the Water Act, any person who is directly affected by the EPEA Application or the Water Act Application may submit a written statement of concern. Statements of concern under EPEA and the Water Act must be submitted by August 12, 2005. Failure to file a statement of concern may affect the right to file a Notice of Objection (on appeal) with the Environmental Appeal Board. Please quote Application No. 004-20809 (EPEA) or File No. 60330 (Water Act) when submitting a statement of concern. If no statements of concern are received, the EPEA and Water Act applications may be approved without further notice. Please submit your statement to:

Director, Northern Region
Alberta Environment
Regulatory Approvals Centre
Main Floor, Oxbridge Place
9820 106th Street
Edmonton, Alberta T5K 2J6
Telephone: (780) 427-6311
Fax: (780) 422-0154

Note that any statements filed regarding these applications are public records and are therefore accessible by the public.

Issued at Calgary, Alberta, on May 11, 2005.

ALBERTA ENERGY AND UTILITIES BOARD
Douglas A. Larder, General Counsel